UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Thi My Chi FACTORS AFFECTING CUSTOMER SATISFACTION IN GROUP BUYING IN VIETNAM MASTER OF BUSINESS (Honours) Ho Chi Minh City – 2013 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Thi My Chi FACTORS AFFECTING CUSTOMER SATISFACTION IN GROUP BUYING IN VIETNAM ID: 60340102 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr Tran Ha Minh Quan Ho Chi Minh City – 2013 - i - ABSTRACT Recently, group buying model is developing rapidly and impressively in Vietnam as a type of online shopping This study aims at investigating the motivations that influence customer satisfaction as well as service quality of group buying This research will find out that service quality, brand, trust and price are critical factors influenced customer satisfaction with service quality is the most important factor Keywords: group buying, group buying site, customer satisfaction - ii - TABLE OF CONTENTS ABSTRACT i TABLE OF CONTENTS ii LIST OF FIGURES iv LIST OF TABLES v I INTRODUCTION 1 Research background Research motivation 3 Research questions 4 Research objectives II LITERATURE REVIEW Group buying Service quality Online service quality Service quality and customer satisfaction 11 Price discount and customer satisfaction 12 Trust and customer satisfaction 13 Brand and customer satisfaction 13 Research framework 14 III RESEARCH METHODOLOGY 16 Research process 16 Research sampling method 18 Measurement scales 19 Data collection procedure 21 Data analysis method 21 5.1 Descriptive analysis 21 5.2 Reliability analysis 22 - ii - 5.3 Exploratory Factor Analysis (EFA) 22 5.4 Multiple regression analysis 23 IV FINDING AND ANALYSIS 24 Sample description 24 Evaluation and refinement of measurement scales 27 2.1 Cronbach Alpha Reliability Analysis 28 2.2 Exploratory Factor Analysis (EFA) 30 2.2.1 EFA for independent variables 30 2.2.2 EFA for dependent variable 37 2.2.3 Pearson Correlation Coefficient 38 Hypotheses testing 39 3.1 Testing assumptions of Multiple Regressions 39 3.2 Regression analysis 41 3.3 Summary of hypotheses testing results 42 Discussions of the findings 43 V CONCLUSIONS AND IMPLICATIONS 45 Conclusion 45 Implications of this research 45 Research limitations and implications for future research 47 REFERENCES 49 APPENDIX A 54 APPENDIX B 60 APPENDIX C 66 APPENDIX D 68 APPENDIX E 70 APPENDIX F 71 LIST OF FIGURES Figure 2.1 The research model and hypotheses 14 Figure 3.1 Research process 17 Figure D.1 Histogram of SATIS dependent variable 68 Figure D.2 Normal P-P Plot of regression standardized residual 68 Figure D.3 Scatterplot 69 LIST OF TABLES Table 3.1 Survey item summary 20 Table 4.1 Sample characteristics 24 Table 4.2 Cronbach’s alpha reliability test result 28 Table 4.3 KMO and Bartlett’s Test for independent variables 30 Table 4.4 Rotated Component Matrix 31 Table 4.5 Removal process during EFA 32 Table 4.6 Total Variance Explained 33 Table 4.7 Rotated Component Matrix 34 Table 4.8 Cronbach’s alpha summary after EFA 36 Table 4.9 KMO and Bartlett's Test for dependent variable 37 Table 4.10 Factor loading of satisfaction variable 37 Table 4.11 Pearson correlation coefficients between SATIS and other independent variables 38 a Table 4.12 Coefficients 40 Table 4.13 The summary of overall value 41 a Table 4.14 ANOVA result 41 Table 4.15 The result of testing hypotheses 42 Table C.1 Pearson correlations 66 Table E.1 Descriptive Statistics 70 Table F.1 Measurement scales 71 - - I INTRODUCTION In the first chapter, the background of the chosen research subject will be presented, along with problem background and the purpose of this thesis Finally, the research question will be addressed with the research objectives which will be clarified clearly in later parts Research background In the past, consumers must go to the store and buy commodities directly It takes much times and also brings the inconvenience to consumers, especially who are far away from the store Nowadays, as the Internet has been developing, more buyers are enjoying online shopping because the Internet services are as a convenient way to shop Consumers can buy goods, even services, online, where makes more options for them Consumers who have a want for some favor services or goods could be gathered when making an online shopping (J Chen, Chen, & Song, 2002; Pi, Liao, Liu & Lee, 2011) Additionally, it offers many advantages, such as facility, rapidity, a 24-hour opening and unrestricted geography Due to the advantages of Internet, in the context of electronic commerce, online group buying becomes more and more popular According to Rezabakhsh et al (2006), “central idea of online group-buying is the aggregation of geographically dispersed consumer purchasing power from all over the countries that have a common interest in a certain product and come together on the group-buying sites to get price discounts” In addition, joining online group buying, consumers not only get competitive advantages of quantity system price and delivery service, but also have chances to share shopping experiences with other buyers In Vietnam, according to electronic information website Maskonline, website phagia.com appeared officially on June 2010, making an underground river to the field of electronic commerce in the country Some months later, many other group buying sties were born to compete each other, as cungmua.com, muachung.vn, nhommua.com, etc According to Vu Hong Quang, a representative of the Southern VC Corp which owns muachung.com, after just months of operation, his site already has 100.000 members Muachung.com’s main competitor, nhommua.com has the same number of registered users but even some of the newer sites have 60.000 members According to uncompleted statistics, up to now, Vietnamese market has about 97 sites that offer group buying services (E-Money, 2011) Deals sites can create a winning situation all around that give benefit to three sites: business, coupon site and consumer Businesses get some much needed traffic, the coupon sites get a commission for pulling in that traffic and consumers get a good deal And Vietnamese are loving this model Group buying model adopts “tipping point” mechanism This mechanism requires a minimum number of participants for each deal There are two conditions make a transaction happens: the number of actual participants exceeds the minimum number and the potential buyers have prepaid for the deal (Cohen, 2009) A deal usually includes price discount of the product or service When the number of people reaches a certain limitation, customers will get direct discounts on goods or services or they can buy vouchers with attractive prices (E-Money, 2011) According to action.vn, group buying model is as a balloon inflated round two years ago, but it is now flat and gradually has to transform to survive (May 2012) Even Groupon in the U.S., the first group buying model in the world, also had bitterly announced dismal sales declines in the last months In Vietnam, the group buying model is facing to changes to overcome this difficult period In the past, the majority of the initiators were main buyers in online group buying However, because of the impact of global economic recession, many initiators are aggressive being the roles of vendors holding the products or services to supply to consumers This research doesn’t focus on analyzing the reason why initiator acts as vendor, however, vendor role of initiator is considered as a part of group buying mechanism to evaluate service quality later Research motivation Kris Ashton (2011) noted that, since many consumers are not familiar or comfortable with online payments, most vouchers are purchased by money transfer or cash on delivery Vouchers are often lost or delivered lately and the cost of delivery can be costly There is also the problem of many merchants that don’t follow the rules of the contract, provide inferior service or treat voucher holders differently than they customers that are paying full price Summarily, they are all problems in service quality that group buying services need to focus more to survive in recent difficult environment In previous studies, some of them discussed online group buying in operator point of view: Wei et al (2011) proposed a management model in online group buying’s process, Matsuo (2009) proposed an effective pricing mechanism for traders, Anand and Aron (2003) using analytical economic models to study the phenomenon of online group buying The other discussed from consumer point of view: Liao et al (2012) focused on consumers’ demands and preference of stuff in online group buying, Tsai et al (2011) found out that trust in virtual community and website quality are the determinants of online group buying’s intention, etc + Công nghệ & điện tử + Sách & truyện Bạn chi tiêu cho lần mua sắm trực tuyến? + Dưới 100.000 VNĐ + 100.000 – 500.000 VNĐ + 500.000 – 1.000.000 VNĐ + Trên 1.000.000 VNĐ Bạn mua phiếu giảm giá trang Mua Theo Nhóm nào? + hotdeal.vn + nhommua.com + cungmua.com + muachung.vn + cucre.vn + phagia.com.vn + Ý khác (vui lòng ghi rõ): ………………………………………………… II Sự hài lòng khách hàng Vui lòng khoanh tròn vào số từ đến tương ứng với mức độ từ Hồn tồn khơng đồng ý (1) đến Hoàn toàn đồng ý (5) để thể mức độ đồng ý bạn với nội dung câu hỏi Hồn tồn Khơng đồng ý Hồn tồn đồng ý Sự hài lịng chất lượng dịch vụ… Tơi dễ dàng tìm kiếm cần thiết trang web Tôi dễ dàng truy cập tất mục trang web Tôi hồn thành giao dịch cách nhanh chóng trang web Các thông tin trang web xếp cách hợp lý 5 Trang web load nhanh Cách thức chọn hàng trang web nhanh gọn dễ dàng Trang web luôn sẵng sàng giao dịch lúc Trang web tải liệu nhanh chóng sau đăng nhập vào Trang web không bị lỗi suốt thời gian truy cập 10 Trang web không bị treo nhập thông tin đặt mua hàng Sản phẩm/dịch vụ đặt mua giao 11 hạn khoảng thời gian mà trang web thông báo với tơi trước Nhà cung cấp dịch vụ Mua Theo Nhóm xếp giao hàng khoảng thời gian thuận tiện cho 13 Nhà cung cấp dịch vụ Mua Theo Nhóm giao hàng nhanh 12 14 Trang web cung cấp nhiều loại hình giao hàng để tơi lựa chọn cách thức phù hợp với 15 Số lượng chất lượng sản phẩm/dịch vụ nhận xác với tơi u cầu Số lượng chất lượng sản phẩm/dịch vụ tơi nhận 16 hồn tồn với nhà cung cấp dịch vụ Mua Theo Nhóm giới thiệu 17 Cách thức toán thuận tiện dễ dàng cho khách hàng 18 Trang web cung cấp nhiều loại hình tốn để tơi lựa chọn cách thức phù hợp với 19 Trang web bảo vệ thông tin tốn khách hàng, ví dụ như: thơng tin thẻ tín dụng, thẻ visa,… 20 Trang web khơng sử dụng sai mục đích thơng tin cá nhân khách hàng 21 Tơi cảm thấy an tồn cung cấp thông tin cá nhân cho trang web dịch vụ Mua Theo Nhóm 22 Tơi cảm thấy rủi ro giao dịch mua sắm trực tuyến thấp 23 Trang web cung cấp cho khách hàng nhiều tùy chọn trường hợp muốn hoàn trả sản phẩm 24 Tôi dễ dàng trả lại sản phẩm mua khơng phù hợp với tơi 5 25 Tôi dễ dàng đổi lại sản phẩm sau mua 26 Trang web có cung cấp thơng tin hữu ích việc mua hoàn trả sản phẩm/dịch vụ 27 Trang web có hướng dẫn cụ thể, rõ ràng cách thức để thực giao dịch không xử lý 28 Trang web xử lý cố cách nhanh chóng 29 Trang web có cung cấp số điện thoại đến cơng ty 30 Trang web ln có người hỗ trợ khách hàng trực tuyến 31 Trang web có thơng tin để liên hệ trực tiếp với nhân viên hỗ trợ khách hàng 32 Tơi liên lạc với cơng ty cung cấp dịch vụ Mua Theo Nhóm cách dễ dàng Sự hài lịng nhãn hiệu… Tơi lựa chọn Mua Theo Nhóm tơi biết nhãn hiệu hàng hóa/dịch vụ quảng cáo trang 1 web nhãn hiệu có ảnh hưởng đến hài lịng tơi Tôi chọn sản phẩm theo nhãn hiệu 5 Với loại sản phẩm, chọn nhà cung cấp dịch vụ Mua Theo Nhóm có cung cấp nhãn hàng tơi u thích Tơi nghĩ giới thiệu cách tham gia vào Mua Hàng Theo Nhóm hỏi tơi 5 Tôi giới thiệu dịch vụ Mua Theo Nhóm với người thân bạn bè làm tơi hài lịng 5 5 Tôi thấy đáng để mua sản phẩm/dịch vụ sử dụng coupon giảm giá trang web Mua Theo Nhóm mua với giá thức bên ngồi Tơi hài lịng với giá rẻ mà nhà cung cấp dịch vụ Mua Theo Nhóm cung cấp Tôi mua sản phẩm/dịch vụ từ trang web Mua Theo Nhóm cung cấp giá rẻ trang lại Sự hài lòng niềm tin… Tôi tin nhà cung cấp dịch vụ Mua Theo Nhóm giữ lời hứa họ sản phẩm/dịch vụ họ cung cấp Tôi tin nhà cung cấp dịch vụ Mua Theo Nhóm đáng tin Tôi tin trang web nhà cung cấp dịch vụ Mua Theo Nhóm khơng lừa gạt khác hàng để kiếm tiền bất Sự hài lịng giá cả… Ảnh hưởng đến hài lòng khách hàng… Nhìn chung tơi hài lịng mua hàng trang web Mua Theo Nhóm Chất lượng trang web Mua Theo Nhóm với mong đợi tơi Tơi thấy hài lịng mua hàng trang web Mua Theo Nhóm so với trang web bán hàng online khác Tôi nghĩ định mua hàng trang web Mua Theo Nhóm III Thông tin cá nhân Xin bạn cung cấp vài thông tin cá nhân nhằm mục đích phân loại đây: - 65 - Giới tính: Nam Độ tuổi: Dưới 18 Trình độ học vấn: Nghề nghiệp: Kỹ sư Bác sĩ Nữ 19-25 26-35 Phổ thông Cao đẳng Thạc sĩ Tiến sĩ 36-45 Lớn 45 Đại học Nhân viên bán hàng Kế toán Học sinh/sinh viên Giáo viên Khác (vui lòng ghi rõ): ……………………………………………… Mức thu nhập: Dưới triệu/tháng 5-10 triệu/tháng 11-15 triệu/tháng 16-20 triệu/tháng Trên 20 triệu/tháng Cám ơn hợp tác bạn! - 66 - APPENDIX C – PEARSON CORRELATIONS Table C.1 Pearson correlations RESPON Pearson Correlation RESPON CONTA PRIVA BRAND FULFIL EFFIC SYAVA Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 CONTA PRIVA BRAND FULFIL EFFIC SYAVA PRICE TRUST SATIS 000 000 000 000 000 000 000 000 -.038 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 530 270 270 000 1.000 270 270 000 1.000 270 000 1.000 270 270 000 1.000 270 000 1.000 270 000 1.000 270 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 ** 349 000 270 075 217 270 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 270 000 1.000 ** 385 000 270 * 145 017 270 * 142 019 270 * 124 042 - 67 - PRICE TRUST SATIS N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation 270 000 1.000 270 000 1.000 270 -.038 270 000 1.000 270 000 1.000 270 349 ** 270 000 1.000 270 000 1.000 270 075 270 000 1.000 270 000 1.000 270 270 000 1.000 270 000 1.000 270 270 000 1.000 270 000 1.000 270 270 000 1.000 270 000 1.000 270 270 000 1.000 270 ** * * * ** 385 145 142 124 270 355 270 000 1.000 270 270 111 Sig (2-tailed) 530 000 217 000 017 019 042 000 068 N 270 270 270 270 270 270 270 270 270 ** Correlation is significant at the 0.01 level (2-tailed) * Correlation is significant at the 0.05 level (2-tailed) 270 ** 355 000 270 111 068 270 270 - 68 - APPENDIX D – MULTIPLE LINEAR REGRESSION ASSUMPTION TESTING RESULTS Histogram Dependent Variable: SATIS Figure D.1 Histogram of SATIS dependent variable Normal P-P Plot of Regression Standardized Residual Dependent Variable: SATIS Figure D.2 Normal P-P Plot of regression standardized residual Figure D.3 Scatterplot APPENDIX E – DESCRIPTIVE ANALYSIS Table E.1 Descriptive Statistics N RESPON CONTA PRIVA BRAND FULFIL EFFIC SYAVA PRICE TRUST SATIS Valid N (listwise) 270 270 270 270 270 270 270 270 270 270 270 Minimum Maximum 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Mean 2.4269 3.3509 2.9685 3.4065 3.1420 3.5602 3.2593 3.2247 2.8593 3.5278 Std Deviation 86117 79394 71523 73026 85746 73945 80443 82438 92095 67666 APPENDIX F – MEASUREMENT SCALES Table F.1 Measurement scales Construct Efficiency System availability Variable Questions ONLINE SERVICE QUALITY EFFIC1 It is easy to find what I need on group buying site EFFIC2 It is easy to get anywhere on group buying site EFFIC3 Group buying site enables me to complete a transaction quickly EFFIC4 Information at group buying site is well-organized EFFIC5 Group buying site loads page fast EFFIC6 Order process of group buying site is brief and simple SYAVA1 SYAVA2 SYAVA3 SYAVA4 Fulfillment FULFIL1 FULFIL2 FULFIL3 FULFIL4 FULFIL5 Group buying site is always available for business Group buying site launches and runs right away after I log in Group buying site does not crash during I access Pages at group buying site not freeze after I enter my order information The product/service I ordered was delivered to me within the time promised by the online group buying site Group buying site arrange delivery time well to be suitable to time frame of customer Group buying site quickly delivers what I order Group buying site supports many kinds of delivery for customers to choose the suitable one The quantity and quality of the Source Adapted from Parasuraman et al (2005) Adapted from Kim et al (2006) Adapted from Parasuraman et al (2005) Adapted from Parasuraman et al (2005) Adapted from Kim et al (2006) Newly FULFIL6 FULFIL7 product/service I received was exactly the same as which I ordered The quantity and quality of the product/service I received was exactly the same as which group buying site introduced Payment method is simple and convenient for customers FULFIL8 Group buying site supports many kinds of payment method for customers to choose the suitable one Privacy PRIVA1 Group buying site protects customer information related to payment such as credit card, visa card, etc PRIVA2 The site will not misuse of personal information of customer PRIVA3 I felt secure in providing personal information for group buying purchase PRIVA4 I felt the risk associated with online transactions was low Responsiveness RESPON1 Group buying site provides customers with convenient options in case of returning items RESPON2 It is easy to return product after purchasing if it is not appropriate RESPON3 It is easy to exchange product after purchasing RESPON4 Group buying site offers a meaningful guarantee for purchasing product/service RESPON5 Group buying site has the clear instruction that tells me what to developed Newly developed Adapted from Kim et al (2006) Adapted from Kim et al (2006) Adapted from Parasuraman et al (2005) Adapted from Yang et al (2004) Adapted from Parasuraman et al (2005) Adapted from Kim et al (2006) Adapted from Kim et al (2006) Adapted from Parasuraman et al (2005) RESPON6 Contact CONTA1 CONTA2 CONTA3 CONTA4 Brand image BRAND1 BRAND2 BRAND3 Brand awareness BRAND4 BRAND5 Trust TRUST1 TRUST2 TRUST3 Price discount PRICE1 if my transaction is not processed Group buying site takes care of problems promptly This site provides me a telephone number to reach the company This site has customer service representatives available online If offers the ability to speak to a live person if there is a problem It is easy to contact to company when necessary BRAND My decision to join group buying in a site depend on my knowledge of the brand of product/service being offered and brand affects my satisfaction I choose product by brand name With the same product, I would join the site that has the brand I prefer rather than the other one I aware, if someone asked me about group buying, I will ask him or her to join it I will introduce to my friends or my relatives about group buying service with all my satisfaction TRUST I believe that group buying service can keep their promise I believe that group buying service is honest and trustworthy I believe the group buying site does not behave opportunistically (e.g gaining money illegally) PRICE DISCOUNT I consider it worth to purchase service/product using discount price through group buying site than purchase the same one for the Adapted from Parasuraman et al (2005) Newly developed Adapted from Keller (2008) Adapted from Li et al (2009) Adapted from Eid (2011) Adapted from Kittipong et al (2011) Satisfaction full price PRICE2 I am satisfied with the discount price that group buying service offers PRICE3 I will buy product/service from group buying site if its price is lower than others CUSTOMER SATISFACTION SATIS1 In general, I am satisfied with purchase on group buying sites SATIS2 The current quality of group buying sites meets my expectation SATIS3 I feel more satisfied when purchasing product/service on group buying sites rather than on other online sites SATIS4 I think I did right thing when I purchased product/service on group buying sites Adapted from Collier (2009) Adapted from Chang et al (2010) Newly developed